lol

Guess that's where there are....

Hehe I don't think you have gotten the actual/correct info. I won't call you BS, peace bro, just perhaps there's some misinformation.

But don't get me wrong, i do agree with your "Developer laugh all the way to the bank, buyers cry" statement. What I trying to say is that the prices of most landed properties has the fundamentals to support(the actual cost to build now plus the land cost) even if the bubble pops now.

I'm not too sure about this.

DSL as you know has great variance in location across KV.

1) DSL in matured area? (ie TTDI, D Heights)
2) DSL in "medium class" area? (Cheras taman, SS2, KJ)
3) DSL in far off area? (Sg Long, Rawang, Cheras Bt 9, Kajang, Semenyih)

Also the variance in type of DSL?

1) Built gated guarded? (DSP)
2) Built gated guarded with facilities?
3) Self-gated guarded?
4) No gated
5) Low-cost

I beg to differ on your first few lines as I worked as a civil engineer in the construction line. Constructing a DSL still as cheap as RM150k to 200k for the structural + infrastructural works ONLY; for a normal 20x70 build up. Of course, depending on the architectural facade as it affects the whole structure and the ease of the construction. A flat land in nature was easier to construct, if no basement and if the design was simplistic then it is possible to achieve cost of RM350k below to build up a quality landed, excluding land price.

Yes, construction materials did go up in these several years.... but the selling price do not make up with the structural and infrastructural costs mathematically and logically for today's development. Many reasons.... which majorly pointed at government and bank policies that had caused the construction boom to keep the economy growing and running; while most developers are abusing gains by borrowing money and building condos as many as possible while we people happily lock ourselves into unnecessary debts.

In fact no material is 'High End' in engineering terms.... It is all about the successful gimmick made by the developers and real estate agents on living a high end, safe and guarded lifestyle while sucking you dry and making themselves richer and richer. It is only how much abuse the material can take, and the workmanship during construction. To me, any highrise above RM300k is not worth the penny.

This post has been edited by MishimaZ: Nov 19 2013, 06:31 PM

Govt disallows interest capitalisation scheme for housing licence approval

http://www.thestar.com.my/Business/Busines...E-APPROVAL.aspx

I have 2 businesses related to construction industry since 1980s. I remember in the 90s, the ballpark cost to build a DSL in KV is RM60k for 20'x70'. Nowadays it is about RM150k. Maybe more if the design of the house is complicated.

Indo workers cost was RM20/day (unskilled) and RM30/day (skilled). Nowadays Indon skilled worker command RM100-RM120/day. And you can't get good Indo nowadays ! Only Bangla whose skill is bad

Clay Bricks (the orange brick you refer to) was RM0.10+. Now RM0.30+. Cement bricks was around RM0.08. Now RM0.20+

Yes there are some building materials actually reduced in price. Generally materials from China which previously not imported (like floor tiles now become very cheap psf wise). But the labour cost has increased tremendously. Thus caused the construction cost to increase

Looks like the article is singing my tune
Thank for the link.

Cost push inflation will drive up price; without control, inflation rate will spiral up like Zimbabwe. To keep inflation rate within acceptable limit, bnm could increase interest rate and reduce money supply. If rise in inflation rate is certain than rise in interest rate is equally certain. Rise in interest rate will have negative impact on assets (e.g. property) demand.

In 2007, US gomen didn't do anything to curb property price increase. The housing bubble was burst by sub prime loan i.e buyers/owners couldn't service their loan. On the contrary, bnm should intervene early to prevent extended tenure loan given to marginal borrowers.

Historically, after inflationary economy is always a recession.

They become member of mia already.

Unlike stock and commodity (e.g. gold), it takes months if not years to cash out property investment. Before cashing out, property investor couldn't influence the market but hope for the best. UUU are generally adamant investor especially those couldn't afford or has too much to loss, and only believe in positive outcome. To reinforce their believe in positive outcome, many stretched their resources to commit even more on property. Hence, many hardcore UUU own multiple units of property.

Bro, you got to reread your economics 101 again.

He is taking about monetary policy.

Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability.[1][2] The official goals usually include relatively stable prices and low unemployment. Monetary economics provides insight into how to craft optimal monetary policy.

Monetary policy is referred to as either being expansionary or contractionary, where an expansionary policy increases the total supply of money in the economy more rapidly than usual, and contractionary policy expands the money supply more slowly than usual or even shrinks it. Expansionary policy is traditionally used to try to combat unemployment in a recession by lowering interest rates in the hope that easy credit will entice businesses into expanding. Contractionary policy is intended to slow inflation in order to avoid the resulting distortions and deterioration of asset values.

What's wrong ? U have different theory ?

This post has been edited by jolokia: Nov 20 2013, 08:40 AM

-BLR increase,easy entry from new housing project, Inflation Increase, Household Expenses Increase, Stamp Duty Increase, Monthly Installment Increase, Cukai Tanah & Cukai Pintu Increase and APA-APA pun increase No decrease then there will be good bargain in subsales market.

No sir, it is Economics 101 which you do not understand.

Cost based inflation cannot be solved through monetary policy. Google it.

Judging by 20/30% up in profit for every quarter by developers, ya ya cost base inflation. ..zzz

Again my oil prices theory, back in 2008 oil price was once at USD 148, all the oil companies was saying expect it to reaches USD 200 in few months as oil supply is seriously deteriorating, no more new oil sources, cost to explore oil has gone up its is impossible to lower their cost, within months if not weeks oil tumble below USD 50, Dubai become dead city all construction stop, my Malaysian co. get burn, 5 years has gone oil price currently hovering below USD 100, so how it that possible ? cost deflation ? or found oil in Mars ?

Economy 101 ..huh perhaps this worth a case studies. .lol

This post has been edited by jolokia: Nov 20 2013, 06:57 PM

Don't do a strawman. Historical profit is no indication of incoming future cost based inflation.

zzzzz

This post has been edited by DoomCognition: Nov 20 2013, 06:50 PM

maybe UUU campers already got bored of listening to this?

to be honest... so far it's only UUU so the debate has been going long enough until there's nothing much to say...probably the UUU campers now enjoying their earnings and just smile and looking at this thread?

Are you saying rise in interest rate and tightening money supply won't have any impact on property price?

Property price rise is not a inflation?



This post has been edited by icemanfx: Nov 21 2013, 12:02 AM

Only if they have liquidated their investment else what they are spending is "future money". If they have liquidated property investment, by default they are no longer in UUU camp.

Until investment is liquidated become hard cash in bank account, it could be a liability.